Payment disputes over Russia’s latest ‘cable-cutting’ submarine

Bruce Jones, London - IHS Jane's Defence Weekly

23 January 2018

The Russian Ministry of Defence (MoD) and Zvezdochka shipyard have filed counter-lawsuits against each other over the long-term refit and rebuild of the original Delta-IV-class nuclear submarine Podmoskovye , the independent Interfax and state-owned TASS news agencies have reported.

Zvezdochka Ship Repair Center JSC, part of the United Shipbuilding Corporation, is claiming RUB6.8 billion (USD120 million) against the MoD, which in turn claims RUB3.7 billion from Zvezdochka. A RUB22.8 billion contract was awarded in 2004 covering the upgrade, but Zvezdochka claims that it only received RUB16 billion. The shipyard alleges that part payments were not made in full, while the MoD insists that advanced payments were made from 2004 to 2017.

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